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Welfare consequences of a recent tax reform in Mexico

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  • Carlos M. Urzúa

    (El Colegio de México)

Abstract

This paper evaluates the indirect tax reforms that took place in México in 1995 and 1998, focusing on their impact on welfare at the household and social levels. The empirical analysis is based on the estimation of an Almost Ideal Demand system, using its correct nonlinear version and by means of the generalized method of moments.

Suggested Citation

  • Carlos M. Urzúa, 2001. "Welfare consequences of a recent tax reform in Mexico," Estudios Económicos, El Colegio de México, Centro de Estudios Económicos, vol. 16(1), pages 57-72.
    • Handle: RePEc:emx:esteco:v:16:y:2001:i:1:p:57-72
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    File URL: https://estudioseconomicos.colmex.mx/index.php/economicos/article/view/210/212
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    References listed on IDEAS

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    1. Charles L. Ballard & Don Fullerton & John B. Shoven & John Whalley, 1985. "General Equilibrium Analysis of Tax Policies," NBER Chapters, in: A General Equilibrium Model for Tax Policy Evaluation, pages 6-24, National Bureau of Economic Research, Inc.
    2. Heien, Dale & Jarvis, Lovell S. & Perali, Federico, 1989. "Food consumption in Mexico : Demographic and economic effects," Food Policy, Elsevier, vol. 14(2), pages 167-179, May.
    3. Banks, James & Blundell, Richard & Lewbel, Arthur, 1996. "Tax Reform and Welfare Measurement: Do We Need Demand System Estimation?," Economic Journal, Royal Economic Society, vol. 106(438), pages 1227-1241, September.
    4. N/A, 1985. "General Policy," India Quarterly: A Journal of International Affairs, , vol. 41(1), pages 74-79, January.
    5. Chen, Kevin Z., 1998. "The symmetric problem in the linear almost ideal demand system," Economics Letters, Elsevier, vol. 59(3), pages 309-315, June.
    6. King, Mervyn A., 1983. "Welfare analysis of tax reforms using household data," Journal of Public Economics, Elsevier, vol. 21(2), pages 183-214, July.
    7. Daniel T. Slesnick, 1998. "Empirical Approaches to the Measurement of Welfare," Journal of Economic Literature, American Economic Association, vol. 36(4), pages 2108-2165, December.
    8. Keen, Michael, 1986. "Zero Expenditures and the Estimation of Engel Curves," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 1(3), pages 277-286, July.
    9. James Banks & Richard Blundell & Arthur Lewbel, 1997. "Quadratic Engel Curves And Consumer Demand," The Review of Economics and Statistics, MIT Press, vol. 79(4), pages 527-539, November.
    10. Davidson, Russell & MacKinnon, James G., 1993. "Estimation and Inference in Econometrics," OUP Catalogue, Oxford University Press, number 9780195060119.
    11. Jarque, Carlos M., 1987. "An application of LDV models to household expenditure analysis in Mexico," Journal of Econometrics, Elsevier, vol. 36(1-2), pages 31-53.
    12. N/A, 1985. "General Policy," India Quarterly: A Journal of International Affairs, , vol. 41(1), pages 112-117, January.
    13. Atkinson, Anthony B., 1970. "On the measurement of inequality," Journal of Economic Theory, Elsevier, vol. 2(3), pages 244-263, September.
    14. Deaton, Angus S & Muellbauer, John, 1980. "An Almost Ideal Demand System," American Economic Review, American Economic Association, vol. 70(3), pages 312-326, June.
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    Cited by:

    1. Carlos M. Urzúa, 2005. "The Ahmad-Stern approach revisited," Economics Bulletin, AccessEcon, vol. 8(4), pages 1-8.
    2. repec:ebl:ecbull:v:8:y:2005:i:4:p:1-8 is not listed on IDEAS
    3. Urzúa, Carlos M., 2003. "Igualdad y eficiencia: Un recuento de esquemas tributarios para México," EGAP Working Papers 2004-01, Tecnológico de Monterrey, Campus Ciudad de México.
    4. Urzúa, Carlos M., 2004. "The Ahmad-Stern approach revisited: Variants and an application to Mexico," EGAP Working Papers 2004-05, Tecnológico de Monterrey, Campus Ciudad de México.

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    More about this item

    Keywords

    tax reform; indirect tax; Mexico; reforma tributaria; impuestos indirectos;
    All these keywords.

    JEL classification:

    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
    • H22 - Public Economics - - Taxation, Subsidies, and Revenue - - - Incidence
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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